SAN FRANCISCO—As the industry has
grappled to keep abreast of the next new
thing when it comes to multiplatform services,
technology has morphed into a solution
that content creators can no longer
afford to ignore—a seamless means of delivering
content via broadband that offers a
complementary marriage to the broadcast
and cable delivery world.

At this year’s NAB Show, it was clear that
the industry has begun to embrace over-the-top content in ways that are at turns
meaningful, productive and in some cases
profitable. But what lies ahead?

OTT VS. TV EVERYWHERE
To be sure, OTT is one answer to a question
long-asked by the professional video industry:
how do we embrace the progressive
technology at our fingertips without alienating
an existing business model?

And perhaps most pressing: Is there a
risk in delivering video to consumers without
having control of the very content a
network has worked so hard to create?

Before going any further, it’s important
to distinguish the difference between two
OTT services currently available. “Pureplay”
OTT includes streaming services
such as Hulu, Amazon Prime, Netflix, etc.,
and streamed on a dedicated box such as
the Apple TV or Roku or gaming console.
Another service, called “TV Everywhere” is
available from a pay-TV provider, offering
a downloadable app that provides verification
to allow subscribers to view the pay-TV
content on mobile devices. Either way, viewers
are paying to view the content through
their broadband provider.

The broadcast networks have been wading
into the OTT/TV Everywhere market in
recent years, but with an eye on ensuring
control over who can access the content.
Last month CBS expanded its presence
in the market with the launch of the CBS
app for iPhone and iPad, allowing viewers
to watch its primetime programming
eight days after broadcast, with late-night
programming available within 24 hours of
broadcast. CBS had previously offered such
apps for second
screen content.
ABC, whose
“ABC Player” app
has been available
for the past
three years, recently
marked a
milestone with
10 million downloads.
Fox recently
reached
an agreement
with Comcast
to make its programming
available
to Comcast
subscribers via
TV Everywhere.
And NBC offers
the NBC App that
allows viewing of
network content on mobile devices.

READY FOR WIDER ADOPTION
Unlike VOD or even IPTV, which gives
content owners hands-on control over the
distribution of content, OTT players such
as Netflix, Hulu or others—show that the
technology and the mindset may be ready
for wider adoption.

And the ways that consumers are accessing
this OTT content continues to grow,
whether it’s via a dedicated box such as an
Apple TV or Roku, laptop, gaming console,
tablet or smartphone. The grim news that
has smacked broadcasters in the face earlier
this year—that sales of television sets actually
dropped for the first time in history—
can perhaps be offset by the realization that
it’s not the content that’s being abandoned.
Rather, those who make up the new “Zero
TV” households of the future may be avid
content consumers boosting sales of smartphones
and tablets instead.

A report published by the research firm
The Diffusion Group found strong viewer
interest in having access to multiscreen live
linear content, with 75 percent of pay TV
subscribers saying they were highly likely
to use multiscreen live services if they were
offered them by their content provider. The
survey also found that these services might
generate new revenue from digital advertising
but also bring content distributors significant
additional subscriber revenues.

“Providing OTT services offers the potential
for new revenue via a connected digital
platform capable of delivering targeted
advertising; rich, branded entertainment;
and sponsorships,” said Jennifer Baisch, senior
director of product and services marketing
for iStreamPlanet, a Las Vegas-based
company that provide streaming solutions
to media companies. “One of the biggest
challenges for content owners and distributors
is how to scale the technology that’s
needed to bring more content, including
live broadcast channels, to multiple screens.”

Major networks have begun to jump on
board the OTT train via TV Everywhere,
touting the technology’s ability to reach
consumers. The jump makes sense: by connecting
the dots between its various content
creation arms—like the ABC Television
Group has done with ESPN and the Disney the Disney Channel—paying cable subscribers
are able to stay loyal to a network
by watching distributed programming on
secondary devices.

THE REVENUE ISSUE
At its simplest, consumers are able to
view OTT content two ways: by downloading
an app to a mobile device, or by
watching online via a live stream or via
VOD. One major hangup for the industry
has been the issue of revenue, and how
best to market and price programming that
comes through a secondary device. Experts
say that figuring out how to make revenue
from OTT programming remains in flux—a
smattering of solutions range from individually
targeted advertising that pops up on
a smartphone when a viewer is watching a
show, as well as onscreen ads that rotate in
and out while a viewer is watching a self-controlled
secondary-angle camera on their
tablet, for example. So when that tough-girl
from “Sons of Anarchy” saunters on screen
wearing new sunglasses, a targeted ad pops
up on a viewer’s tablet, an opportunity for
content creators to dream up all sorts of incremental
revenue possibilities.

Discussions are ongoing with networks
and their affiliates about how this OTT
relationship can be mutually beneficial
to both. The affiliate board of directors of
the major networks met at the NAB Show
earlier this month to discuss, among other
things, the live streaming of local and network
content under evolving OTT delivery
methods.

ALTERNATE METHODS
Solutions like Syncbak are also finding
footing. A television distribution platform
that’s been adopted by a number of broadcasters
for OTT delivery of live, in-market
television to mobile devices, the Syncbak
app supports the iPad and includes an interface
that allows users to view streaming
schedules and search for live content. CBS
and Fox are two broadcasters experimenting
with the technology, which has the
benefit of further pairing local viewers
with local content.

“Consumers are voting with their devices,”
says Brian Brady, CEO of Northwest
Broadcasting, whose stations in Spokane,
Wash., helped test the Syncbak technology
last year. Brady now serves on the board
of Syncbak. “As broadcasters, we need to
make sure our content is seen by our viewers,
regardless of device. The Syncbak platform
not only helps us [accomplish] OTT,
but to lead the way.”

Added Jack Perry, CEO of Syncbak: “Our
app and platform [enable] broadcasters to
keep their brand in front of viewers wherever
they are and for viewers to be able
to access live broadcast TV on a device
they already own and carry,” he said. “We’re going to make it easy for any station who
wants to become an Internet broadcaster.”

Other OTT solutions like Skitter are being
positioned as a solution for ISPs who
want to deliver live TV to their customers.
Viewers who own a streaming box
like Roku can use the Skitter solution to
provide live television to OTT-enabled
devices, with video delivered via MPEG-4
ABR encoding that can control the number
of streams delivered to an authorized
subscriber.

WHAT ABOUT LOCAL?
Unfortunately local broadcast stations
do not have the rights to rebroadcast over
TV Everywhere/OTT services. As a result,
local stations are somewhat falling behind
their cable network competitors in providing
programming for this service, according
to Mark Fratrik, vice president and chief
economist with BIA/Kelsey.

“While it may not be too big of an audience
now, it certainly can be in the future,”
he said, “and it is important for local television
stations to be able to access all potential
audiences.”